The Bangko Sentral ng Pilipinas (BSP) today launched its Debt Management and Financial Analysis System (DMFAS) project.
The DMFAS is a software developed by the United Nations Conference on Trade and Development (UNCTAD) - DMFAS Programme which provides technical assistance and advisory services in the area of debt management to strengthen the external debt management capability of countries. The system is used by central banks and ministries of finance in more than 69 countries worldwide.
Since 1994, the BSP has been using the Integrated External Debt Management System or IEDMS, an in-house developed computerized system for recording and monitoring of external debt data. However, the rapidly changing financial landscape, coupled with the emergence of sophisticated financial instruments, as well as the increasing integration and linkages among economies, have heightened the demand for more detailed, current and comprehensive information on, and analysis of, external obligations.
To address the challenges posed by these developments and as part of the Bangko Sentral’s commitment to continuously upgrade its capability in terms of statistical infrastructure, systems and processes, the shift from the IEDMS to the DMFAS was pursued. The initiative is considered timely in the face of sovereign debt problems in the euro zone and the United States. The Philippines, on the other hand, is expected to benefit from the system in further improving its debt profile given its healthy level of reserves, a well-spaced debt maturity structure, and a diversified mix of fund sources.
The new system is, thus, envisioned to increase efficiency in the recording, monitoring and generation of external debt data; further improve compliance with international reporting standards; and optimize the use of available information on debt for policy formulation, analysis and strategy setting for a more pro-active stance in external debt management.